On June 18, 2014, the National Assembly passed the Law No. 49/2014/QH13 on Public Investment and decides to only pay outstanding debts in capital construction arising before January 01, 2015.
At the same time, encouragement of organizations and individuals to make direct investment or investment in the form of public-private partnership for socio-economic infrastructure and public-service provision projects.
Besides, the Law also details some public investment sectors such as investment in socio-economic infrastructure programs and projects; investment to serve activities of state agencies, non-business units, political organizations and socio-political organizations; investment in and support of the provision of public-utility products and services and state investment in projects to be implemented in the form of public-private partnership. Depending on their importance and size, public investment projects shall be classified into national important projects; group-A, group-B and group-C projects.
A national important project is an independent investment project or a cluster of closely linked works which being financed by public investment funds of VND 10 trillion or more; exerting great environmental impacts or having the latent possibility of exerting serious environmental impacts, including nuclear power plants; using land requiring the change of the use purpose of land of a national park; a nature reserve; a protected landscape area; 3.
Using land requiring the change of the use purpose of land under wet rice cultivation with two or more crops of 500 hectares or more; relocating and resettling 20,000 residents or more in mountainous regions or 50,000 residents or more in other regions and projects that require the application of special mechanisms and policies subject to decision by the National Assembly. The Prime Minister has the competence to decide on investment policy on programs and projects.
The public investment activities must assure the publicity and transparency. Management of the use of public investment funds according to regulations applicable to each funding source; assurance of concentrated, synchronous, quality, efficient, effective investment and resource balancing capability; avoidance of losses and waste; Conformity with the national socio-economic development strategy and five-year socio-economic development plans, and socio-economic development and sectoral development master plans.
This Law takes effect on January 01, 2015.
